Damages paid to directly compensate the nonbreaching party for the value of what was not done or performed are _____.
A) consequential damages
B) incidental damages
C) compensatory damages
D) nominal damages
E) liquidated damages

Question

Quizplus · Accepted Answer

Compensatory damages are paid to directly compensate the nonbreaching party for the value of what was not done or performed, such as the cost of repairing or replacing damaged property or the loss of profits resulting from the breach. Consequential damages refer to losses that result from the breach but are not a direct result, while incidental damages are incurred as a result of the breach, but are not related to the value of what was not done or performed. Nominal damages are a small amount of money awarded to show that a legal wrong was committed, while liquidated damages are a predetermined amount specified in a contract that will be paid in the event of a breach of contract.

Damages Paid to Directly Compensate the Nonbreaching Party for the Value